Strategic Analysis of Thermax Ltd.: Operations, and Partnership Report

This report provides a comprehensive strategic analysis of Thermax Ltd., a leading engineering firm. It begins with an introduction to strategic management and its importance, followed by a PEST analysis to assess the political, economic, social, and technological factors affecting Thermax. Porter's Five Forces model is then applied to evaluate the competitive landscape. The report identifies key success factors, critically assesses Thermax's competitive advantage, and develops strategic options to address pertinent issues, including sustainability and innovation. It proposes a strategic direction, considering stakeholder impact, and defends the chosen approach. The analysis covers aspects like political stability, GDP growth, technological advancements, and competitive rivalry. The report suggests strategic options like obviating plastic usage and going paperless. It concludes by emphasizing the importance of sustainable practices and innovation for Thermax Ltd.'s success in the market.

MANAGING STRATEGY,
OPERATIONS AND PARTNERSHIPS

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
COMPONENT 1.............................................................................................................................1
Pest analysis of Thermax limited.................................................................................................1
Porter's five force model..............................................................................................................2
Development of survival and success factor...............................................................................3
COMPONENT 2.............................................................................................................................3
Critically assess the competitive advantage of Thermax Ltd as a result of their strategy using
the tools taught during the term. Develop issues pertinent to Thermax Ltd in the light of the
success factors developed in component 1..................................................................................3
Prioritise the issue and develop strategic options that address at least three of them. Assess
these options and create a strategic proposal including an explanation of the resultant the
strategic direction of Thermax Ltd..............................................................................................5
Consider whether any stakeholder group would be adversely affected by the proposal.............7
Defend your proposal and preferred strategic direction by explaining why each stage of the
analysis was needed in order to ensure your proposal is robust..................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of strategy, operations and partnership into entity is vital for gaining
competitive edge within marketplace. Various decisions are developed through administrative of
firms in respect to strategic management like modifications into product line or characteristics,
adaption of new technology as well as system and many others (Barnes, 2020). As per the
scenario, the chosen company for this report is Thermax Ltd., it is leading engineering firm that
incorporates atmosphere and energy. Respective entity was developed in year 1966. The topics
which are going to be discussed in this report are PEST analysis, Porter’s five force model, and
development of success and survival factor. Moreover, competitive advantage critical evaluation,
develop a strategic proposal are explained. Apart from this, the preferred strategic directions are
also discussed in this report.
MAIN BODY
COMPONENT 1
Pest analysis of Thermax limited
This is vital for Thermax limited to perform the analysis of environment in order to
determine the factors which affects upon business practices. The PEST analyses are discussed
below:
 Political factor: These are that factors which are associated with political situations of
areas in which entity is performing. In respect to Thermax limited, there are several
political aspects that are vital for firm’s profitability. Also, in relation to firm, this is
performing into manufacturing boilers to harness the steam power. Moreover, there is
political stability into various countries in which firm is performing. Also, aids company
to maintain a stabilize norms as well as manufacturing their goods in effective way from
managing the activities.
 Economical factor: These are that factors which are associated with economical
situations (Boyer, 2020). Moreover, this incorporates aspects such as interest rates,
inflations rates, market demand and many more. In respect of Thermax limited, The GDP
development at market demand is crucial factor that affects business. It is so respective
firm manufacture goods that are directly affected to growth of GDP. In this, firm have to
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manage manufacturing practices based upon country’s GDP growth in which they are
performing.
 Social factor: These may be describing as those aspects which incorporate the cultural
factors such as growth rate of population, age distribution and many others. Moreover, it
is the factors that affects optimistically upon Thermax limited. It is due to nitrogen is
utilising environmental friendly as well as healthy friendly technology that assists them to
attain goals associated to societal as well as accomplish their accountabilities towards
society.
 Technological factors: These factors are that which incorporates technological
modification research & development, practices, technological innovation and others
(Clarke and MacDonald, 2020). In respect of Thermax limited, it is performing at higher
profitability. Moreover, it aids entity in attaining their goals as well as managing
activities in effective manner so that they may perform consequently. Firm is applying
full automation and highly enhanced technology. It is useful to develop to manage
atmosphere as well as attain their targets.
Porter's five force model.
Porter’s five force model is considered as a framework that is applied through entity for
determining the factors that are associated with competitive edge within marketplace. In respect
of Thermax limited, there are several factors in porter’s five forces that are associated to firm.
therefore, the initial forces is threat of new entrants. In relation to Thermax limited, this force
does not have affects upon firm due to utilising creative ideas that minimises the possibilities of
new entrants into industry as well as maintain high profit. Threats of substitutes are other aspect
as well as the porter’s five force model that also perform in favour of Thermax limited. It is so
entity is cellular in utilising goods that are not simple for rivals for arranging substitutes of firm’s
product. The third much essential in respective model is bargaining power of buyers. So, in this
relation, where is lower number of buyers to firm’s goods that acts as negatively as it permits
more power to clients for bargaining with entity (Cohen, 2020). Bargaining power of suppliers,
it is also considered as force in respective model that affects the ability of decision- making in
competitive marketplace. in respect to Thermax limited, the bargaining power of suppliers in
comparatively lower to firm. It is so there are not much suppliers for particular services which is
provided through company and also renders the power of bargaining to entity as well as
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minimise suppliers power. Competitive rivalry, it is also a vital force of respective model that
have affects upon firm in which this is associated to competencies into sector. This factors do not
affect Thermax limited’s performance in marketplace as firm is utilising innovation into entity in
which there is no big competitors of firm.
Development of survival and success factor
In respect of Thermax limited, there are various success factor that may be utilise through
firm to attain their goals few of these are described underneath:
 Effective utilisation of sustainability is fundamental activities that assists firm to manage
profit and optimal usages of resources.
 Brining innovation at work area is also a success factor that may utilised through Thermax
limited to attain their goals.
COMPONENT 2
Critically assess the competitive advantage of Thermax Ltd as a result of their strategy using the
tools taught during the term. Develop issues pertinent to Thermax Ltd in the light of the
success factors developed in component 1.
Threats of new entrants: This is the initial factor into competitive analysis that aids to
Thermax limited in attaining their goals. It is so respective firm is performing in that form of
atmosphere in which there are lower level of new entrants due to higher investment as well as
advance technology (De Harlez and Malagueno, 2020). Firm is facilitating as well as innovative
goods that are not simple to obtain through their rivals and the investment cost is also higher. It
performed as competitive advantage to entity as there is a low threat of new entrants into sector.
Threats of substitutes: It also performed as competitive advantage to Thermax limited. It
is so this incorporates that respective force is associated to firm’s goods as well as may minimise
their sale and profit into marketplace in which they are operating. Moreover, within respective
concept, Thermax limited is performing at profitable level it is so there is a lower threat from
substitutes. So, they key reason beside it is that respective force is associated to goods sold
through firm into marketplace. Additionally, this is selling in creative goods that are not simple
for copying or developing products substitutes (Dempsey, Burton and Duncan, 2020). Also, this
competitive advantage to firm aids in attaining edge into marketplace through utilising their
profit.
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Bargaining power of buyers: It is one of the essential force that is directly associated with
competitive edge to firm. in case there is huge number of buyers to goods of firm then this would
perform as benefits to business due to huge base of consumers. Whereas, in case there is not any
number of clients then this may perform as pessimistic aspects to firm within buyers power as
this enhances the buyers power for bargaining for entity’s products.
Bargaining power of suppliers: This is essential force into this evaluation in respect of
Thermax limited. Moreover, it performs as competitive dis-advantage to entity within present
business atmosphere. It is so; there are restricted suppliers number of suppliers to goods utilised
through firm for manufacturing services for end customers (Harris and Houlihan, 2020). In this,
Thermax limited have no bargaining power from suppliers in which power supply is high in
comparison to firm. Additionally, entity have to comply guidelines and norms of suppliers for
obtaining raw material in order to manufacture their goods. the present business sustainability
strategy also need assistance from suppliers for facilitating appropriate operations as well as
attain the goals of various activities also.
Competitive rivalry: This is also the vital force for firm that have to be undertaken through
entity for attaining competitive edge within marketplace. In respective system, firm may follow
effective business idea that would aids to manage their activities and minimise supplier’s power.
Moreover, the competitive rivalry into market may adversely upon firm’s functioning.
Additionally, in this force, there is not such huge competitive rivalry to entity that optimistically
have affects upon entity. It is useful in attaining competitive advantage upon rivals due to not
having existent competitive rivalry within marketplace.
Based upon the above analysis, it may be determined that Thermax limited, it is utilising
strategies in order to attain their goals into marketplace. Moreover, it aids entity to manage their
system in effective way. also, it facilities competitive advantage to firm as through applying
porter’s five forces model, entity may able to attain sustainability as well as bring innovation ay
work area (Heizer, Render and Munson, 2020). Also, it would manager various activities in
guidance of objective as well as utilised for promoting that functions that bring efficient
opportunities within competitive marketplace in which they are operating.
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Prioritise the issue and develop strategic options that address at least three of them. Assess these
options and create a strategic proposal including an explanation of the resultant the
strategic direction of Thermax Ltd.
There are several number of problems that have to be faced through Thermax limited for
attaining the competitive advantage in marketplace as well as operate their activities based upon
requirements. The strategic options may be availed through entity for developing effective
activities and manage their functions. Also, within present business atmosphere, there are various
strategic options that are available for entity for addressing three key problems (Keers and van
Fenema, 2020). Along with this, these problems are managing operations for using sustainability
for maintaining profit, optimal usages of resources based upon recent needs as well as bring
innovation at work area for attaining success factor. In respect of gaining sustainability in
Thermax limited various strategic options that may be utilised through firm for maintaining
activities as well as applying tactics to perform their business operations.
 Obviating usage of plastics: The minimising consumption of plastic into various
operational activities is much helpful tactics that may be opted through entity for
maintaining their function as well as attains objectives. So, within respective activities,
Thermax limited may utilised to obviate utilisation of plastic bottles as well as packaging
of plastics at their several production plants that are located in India. Additionally, firm
have a separate R&D department that bring innovation and aids to manage their
operations in all over the world. There are 3 key segment where firm is operating in
which they may minimise plastic consumption as well as may improve their functions.
 Going paperless: The utilisation of paperless transaction would be considered as one of
the effective strategy that may be adapted through entity. Moreover, it assists in
maintaining sustainability into places in which firm is performing. Along with this, the
present activities of Thermax limited is directly associated with sustainable concept that
also develops firm’s performance and operations and accomplish several types of
accountabilities in order to maintain sustainability (Nurmalade, Leeuw and Dullaert,
2020). Along with this, entity may also utilise paperless system into company that would
assure effective operations associated with sustainable activities. Within firm, it may
utilise present hi-tech internet services that would be useful while going paperless as well
as minimising adverse affect from atmosphere. Additionally, the entity may utilise
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accounting software and techniques that would minimise recoding transactions into paper
as well as save atmosphere effectively and efficiently.
 Bring ethical procurement as well as transparency: The firm’s functions with ethics are
associated with attaining goals as well as managing activities based upon their desires. In
respect of this, Thermax limited may utilise for strengthening their chain of supply by
considering ethical activities while trading and bring sustainable activities. For making
their business much stable and also effective firm functions of manager through
enhancing productivity if several persons.
The human resource perform as vital part of each firm in which Thermax limited also have
for maintaining an effective system in order to utilise resources in proper manner as well as
operate their activities based upon this. It aids them to improve their activities as well as
attaining gaols based upon their expectations and desires (Slack and Brandon, 2020). Moreover,
there are various number of tactics that may be adapted through respective firm to develop
human resource performance and utilise them in effective manner. Few of these are
recommended that are utilised as proposal for improving the activities and operations:
 Evaluation of present capacity: The determination of present ability of entity as well as
several persons who perform into entity is essential for maintaining human resource
effectively. Moreover, it would incorporate competencies and other skills that would
assists firm to evaluate present performance as well as get knowledge about how this may
simply execute strategies for using strengths of person and reducing its weaknesses while
performing several jobs.
 Acknowledging the firm’s goal: It is considered to be one of the fundamental functions
that have to be performed through management of Thermax limited to determine as well
as associate present goals of entity. So, facilitating information to various people about
their goals is vital to attain human resource management objectives. Moreover, through
rendering effective human resource to person would aids firm in attaining their goals as
well as managing human resource appropriately and effectually.
 Determination of human resource requirements: For enhancing the effectiveness of
human resource and manage them in effective and efficient way. Moreover, this is
essential to evaluate its desires while doing their job (Jones, 2020). Moreover, it is crucial
for enhancing encouragement in various staff so that it may perform consequently
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towards the entity’s desires. It is also developing the activities of firm and manage the
jobs based upon its requirements.
Apart from this, Innovation is also crucial for Thermax limited as this assists them to develop
their functions and attain objective of present business atmosphere. Moreover, this incorporates
various forms of tactics as well as activities that may be followed through respective entity to
develop business and attaining goals.
 Facilitating freedom to staff: This is essential for entity to facilitate freedom for their
staff. Moreover, it would aids workers in developing its operation as well as formulates
sense of creativity that would aids in developing mentality out of box (Stadtler and Van
Wassenhove, 2020). It assists to improve innovation into entity as well as would aids in
developing innovative procedures as staff would feel much independence. Along with
this, they may perform with identified activities and innovative ideas.
 Adoption of effective resources: Resource are required for performing innovation in
entity. Moreover, it is so, resources aids business in developing their operations as well as
managing activities based upon the requirements. It is so the resource availability would
assists staff in opting effective system where it may want to perform their operations.
Moreover, it would also support innovative atmosphere.
 Utilisation of democratic leadership: The adoption of democratic leadership style is also
essential factor that renders innovation into entity as well as assists to promote manager’s
functions and other field of working. Moreover, Thermax limited utilise democratic
leadership style that would improve their subordinates’ functions as well as assists them
to bring innovation through developing its activities.
Therefore, form this above, it has been concluded that there are various strategies that may
be utilised through entity for improving innovation into human resources as well as bring
productivity into entity with assistance of developed functioning.
Consider whether any stakeholder group would be adversely affected by the proposal.
The above provided proposal is directly associated with present activities of firm in which
they may bring innovation and improve the utilisation of human resources as well as also try to
bring sustain inability concepts within entity to attain efficient profit (Stafford and Taylor, 2020).
Moreover, utilising this particular concept would affect in adverse manner upon few stakeholders
that have to be managed as well as described based upon the project requirements and desires.
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Some key stakeholders that are affected through respective activities of Thermax limited are
described underneath:
 Suppliers: The respective stakeholder would impacted through this particular proposal. It
is so as there is lower number of suppliers to Thermax limited. Moreover, it acts as
competitive disadvantages for entity but through utilising sustainability concept effective
human resource management as well as high firm’s profit could grab the attention of
huge competitors that would also attract several suppliers within sector.
 Government: It is one of the key stakeholders that would be affected through utilisation
of this activity. It is so firm is going to utilise several forms of resources into marketplace
that would affect upon government functioning as they has to accumulate tax from entity
(Thaler, Priest and Fuchs, 2020). Also, there would be reduction into tax accumulation
due to adopting the concept of sustainability.
Defend your proposal and preferred strategic direction by explaining why each stage of the
analysis was needed in order to ensure your proposal is robust.
In respect of proposal for Thermax limited to improve its operations as well as utilise
effective strategies for attaining their goals which incorporate effective system as well as tactics
that would aids entity to maintain activities as well as operation effectively and efficiently.
These tactics are directly associated to perform various activities that would assists entity to
attain their pre- specified goals as well as maintain separate reputation into marketplace.
moreover, it proposal assists firm to implement sustainability concept through utilising several
aspects as well as evaluating strategies based upon present market conditions (Um, 2020). Along
with this, it is also useful to manage human resources as per the desires and expectations. It also
aids in developing as well as maintaining human resources and attain goals effectively. Also,
respective proposal have quality of facilitating appropriate distance regarding several tactics that
may be utilised through firm for managing innovation and utilise creative ideas for performing
their operations. Thermax limited is growing firm in which this proposal aids to develop their
activities for meeting goals associate to sustainability, human resource and innovation.
The whole proposal is helpful to entity for attaining teir goals and maintaining effective
system so that they may perform based upon present desires and requirements of atmosphere.
Also, it would accomplish whole that goals which are determined through organisation into their
present activities. Moreover, this is essential for firm for performing effective proposal that
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would aids in developing their activities and maintaining whole that resources based upon
desires. So, the explanation related to several aspects that are described within this proposal as
well as its efficiencies in respect of Thermax limited:
 Determination of external environmental abilities: This is considered to be one of the
essential aspects of developing proposal in which various factors are determined that
affect firm from external atmosphere. Moreover, the external environment is directly
related with firm’s performance as well as drives towards attaining their goals due to its
activities. In present business conditions, entity requires to utilise external resource in
effective way (Warner and Sullivan, 2020). Moreover, with respective proposal, it has
been identified that several macro factors that may affects organisational performance in
present time as well as an affect the proposal directly and indirectly. It incorporates
evaluation of political, social, economical and technological factors that are associated
with present business atmosphere in which respective firm is performing.
 Determination of competitive advantage and their analysis: It is considered to be the
second part of respective proposal in which explanation related to firm’s competitive
advantage and utilisation of several activities are mentioned. Within this, porter five force
models is utilised to improve the activities and determines several factors that are
associated with competitive advantage to entity. Moreover, respective model that may be
utilised through Thermax limited for improving their operations as well as identify
several factors that would facilitates competitive edge to firm within present marketplace.
 Analysis of competitive advantage: After analysing the framework of competitive
advantage, respective proposal is also have appropriate explanation regarding competitive
advantage evaluation as well as their vital activities for meeting their goals at
predetermined way (Zeng and Yen, 2020). Moreover, it assists to maintain its operations
as well as perform them based upon the market desires and expectations in effective and
efficient way.
CONCLUSION
Based upon the above report, this has been concluded that the management strategy,
operations and partnership plays essential role within entity. Moreover, there are several
functions that have to be performed through firm in order to attain competitive edge as well as
develop their activities into competitive marketplace. Additionally, these are directly related with
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firm’s operations as well as would promote effective work situations for attaining objectives and
goals. Apart from this, it would promote numerous activities as well as also aids in
accomplishing them in effective and efficient way.
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